Company says its recent acquisition of Scitex Digital Printing is just one step in its plan to become more digitally focused.
Kodak bought up Scitex Digital Printing, a leading high-speed, variable
data inkjet print system vendor, in a bold first step in its strategy of becoming more focused on the digital side of its
business.
With the acquisition, Kodak plans to play a greater role in what it terms
“the growing, $30 billion industry for digital commercial printing equipment.”
Kodak said that under the deal, it will acquire the assets of Scitex Digital
Printing for $250 million in cash, and after taking into account $10 million
expected to be acquired at closing, it will end up paying a net cash price of
approximately $240 million.
That investment should result in a quick ROI, however, the company said,
since it estimates that within the first year, the Scitex buy will put about
$190 million into Kodak’s coffers.
“We are moving decisively to implement our growth strategy by expanding
into a range of commercial digital businesses," said Daniel A. Carp, Kodak’s
chairman and CEO. "One part of that strategy is to acquire in a disciplined
manner companies and technologies that complement our existing businesses,
capabilities and assets. The acquisition of Scitex Digital Printing is a prime
example of how we intend to build upon inkjet technology developed on our own to
build business in growing market segments.
"This is the first of several actions Kodak will take to expand our
participation in the digital commercial printing industry," he said.
For more information, visit Kodak’s investor page here.
